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Minutes for To: Members of the Board From: Office of the Secretary May 18, 1962. Attached is a copy of the minutes of the Board of Governors of the Federal Reserve System on the above date. It is not proposed to include a statement with respect to any of the entries in this set of minutes in the record of policy actions required to be maintained pursuant to section 10 of the Federal Reserve Act. Should you have any question with regard to the minutes, it will be appreciated if you will advise the Secretary's Office. Otherwise, please initial below. If you were present at the meeting, your initials will indicate approval of the minutes. If You were not present, your initials will indicate only that you have seen the minutes. Chin. Martin Gov. Mills Gov. Robertson Gov. Balderston Gov. Shepardson Gov. King Gov. Mitchell Minutes of the Board of Governors of the Federal Reserve System The Board met in the Board Room at 10:00 a.m. On Friday, May 18, 1962. PRESENT: Mr. Mr. Mr. Mr. Mills, Acting Chairman Robertson Shepardson King Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Sherman, Secretary Kenyon, Assistant Secretary Thomas, Adviser to the Board Young, Adviser to the Board and Director, Division of International Finance Molony, Assistant to the Board Fauver, Assistant to the Board Hackley, General Counsel Noyes, Director, Division of Research and Statistics Solomon, Director, Division of Examinations Holland, Adviser, Division of Research and Statistics Koch, Adviser, Division of Research and Statistics Brill, Associate Adviser, Division of Research and Statistics Knipe, Consultant to the Chairman Yager, Chief, Government Finance Section, Division of Research and Statistics Axilrod, Economist, Division of Research and Statistics Money market review. Messrs. Brill and Koch commented on recent developments in the money market, along with trends in economic activity '4101. banking statistics. It was understood that copies of Mr. Brill's c)1111alent5 would be distributed to the members of the Board. All members of the staff except Messrs. Sherman, Kenyon, Fauver, Raciti '-Ley, and Solomon then withdrew and Messrs. Conkling, Assistant eetor, Division of Bank Operations, and Leavitt, Assistant Director, kvi 8J-on of Examinations, entered the room. -2- 5/18/62 Discount rates. The establishment without change by the Federal Reserve Banks of New York, Philadelphia, and San Francisco on May 17, 1962) of the rates on discounts and advances in their existing schedules s Et/....22.22m1 unanimously, with the understanding that appropriate advice ' Ige 'rould be sent to those Banks. Circulated or distributed items. The following items, which had been circulated or distributed to the Board and copies of which are 4ttached under the respective item numbers indicated, were approved unanimously: Item No. RLetter to Liberty State Bank of Hillside, !llside, New Jersey, (1) granting an extension 11 4. time to accomplish membership in the Federal ic) ,!sertrie System, and (2) amending condition of Tmtership numbered 3 in the Board's letter of 'June 12, 1961. 1 Letter to Casa Linda National Bank of Dallas, &as, Texas, granting its request for —Illission to maintain reduced reserves. 2 12EL2/1_2212petitive factors (Boston, Massachusetts). 112, There had been distributed a draft of report to the Federal Deposit Insurance C°113oration on the competitive factors involved in the proposed merger "Institution for Savings in Roxbury, Boston, Massachusetts, with The 13°8ton Five Cents Savings Bank, also of Boston. Agreement having been expressed with changes in the conclusion --146.ested by Governor Robertson, unanimous approval was given to the 5/18/62 tl'ansmittal of the report to the Corporation in a form in which the c°11olusi0n read as follows: Consummation of the proposed merger would eliminate competition between two mutual savings banks which are located in the same metropolitan area, but there would remain a substantial amount of competition in view of the number of other mutual savings banks, commercial banks, and savings and loan associations in the area. Report on competitive factors (Middletown-Port Jervis, New York). Mere had been distributed a draft of report to the Comptroller of the ellrirency on the competitive factors involved in a proposed merger of The National Bank and Trust Company of Port Jervis, Port Jervis, New 13rk, into County National Bank, Middletown, Middletown, New York. The report, in which the conclusion read as follows, was approved 4118nimously for transmittal to the Comptroller: The proposed merger would eliminate one of two banks now competing directly in Port Jervis and would concentrate over 50 per cent of area resources in one bank. While there would remain two unit banks in the area, the over-all effect on competition would be adverse. The meeting then adjourned. Secretary's Note: Pursuant to recommendations contained in memoranda from appropriate individuals concerned, Governor Shepardson today approved on behalf of the Board the following actions relating to the Board's staff: ointment Dorothy Lee Saunders as Secretary, Division of Personnel Adzi ef„. nistration, with basic annual salary at the rate of $4,840, "ctive the date of entrance upon duty. II 0 5/18/62 increasease Harriet D. Berger, Secretary, Division of International Finance, from $4,840 to $5,160 per annum, effective May 27, 1962. Aceetaresignations ----.4f Stephen G. FUerth, Attorney, Legal Division, effective May 26, 1962(t Barton Veret, Attorney, Legal Division, effective at the close business June 1, 1962. .2,11121psion to engage in outside activities 1.) Loree D. Bernard, Statistical Clerk, Division of Research and Statistics, to work part time as theater cashier. Maurice H. Schwartz, Assistant to the Director, Division of earch and Statistics, to teach a course in data processing for 8-gement at George Washington University during the 1962 summer 7 778sion, with the understanding that annual leave would be charged for 4 ha1f-hour per day. Res BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 28, D. C. ADIMILIBIS a Item No. 1 5/18/62 arriciAt. OORRICOPONDENOe TO The BOARD May 18, 1962. °rganizing Committee, Liberty State Bank of Hillside, Hillside, New Jersey. Gentlemen: The Board of Governors of the Federal Reserve System extends to December 12, 1962, the time within which Liberty State Of Hillside, Hillside, New Jersey, may accomplish admission , 0 membership in the Federal Reserve System, as outlined in the Board's letter of June 12, 1961, addressed to the Organizing Committee of the bank. ship The Board also hereby amends condition of member as read to 1961, nlambered 3 contained in its letter of June 12, fellows: 3. At the time of admission to membership, such bank shall have paid-in and unimpaired capital stock of not less than $200,000, and other capital funds of not less than $281,000. plan, whereby The Board has no objection to the proposed y rather compan ated 4.b84 quarters will be provided by an affili uhen by construction of quarters by the bank itself. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON 25. D. C. Item No. 2 5/18/62 AOORESS OFFICIAL CORRESPONDENCE TO THE SCAMP. May 18, 1962. 4tIscl of Directors, W484 Linda National Bank of Dallas, -411es, Texas. Geatieinen: Pursuant to your request submitted through the Federal Bank of Dallas, the Board of Governors, acting under the 41 sions of Section 19 of the Federal Reserve Act, grants perto the Casa Linda National Bank of Dallas to maintain the 15.! reserves against deposits as are required to be maintained etruanks located outside of central reserve and reserve cities, ective as of the date it opens for business. Your attention is called to the fact that such peris subject to revocation by the Board of Governors. Vary truly yours, (Signed) Merritt Sherman Merritt Sharman, Secretary.
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